L10 Announces Record 1,500 VND Dividend Despite Illiquid Stock

Overview

L10, a construction and industrial machinery company listed on HOSE, has announced a record cash dividend of 1,500 VND per share (15% yield) for 2025, payable on June 12, 2026. The dividend is supported by strong 2024 financial results, with revenue rising 34% to 1,438 billion VND and net profit increasing 36.7% to 37.67 billion VND. However, the stock remains highly illiquid due to concentrated ownership, with 87.14% of shares held by three major shareholders.

Key Facts

• L10 will pay a cash dividend of 1,500 VND per share (15% yield) for 2025, the highest since listing.
• The total dividend payout is estimated at 14.7 billion VND, payable on June 12, 2026.
• 2024 revenue reached 1,438 billion VND, up 34% year-on-year; net profit was 37.67 billion VND, up 36.7%.
• Gross profit in 2024 rose 73.6% to 89 billion VND, driven by progress on key industrial and mechanical projects.
• In Q1 2025, revenue surged 83% to 391 billion VND and net profit rose 54% to 5 billion VND.
• The stock trades at 26,850 VND, offering a dividend yield of approximately 5.6%.
• Three major shareholders control 87.14% of L10: Chairman Dang Van Long (40.44%), Lilama Corporation (36%), and Trinh Ngoc Tuan Hung (10.7%).

What Happened

L10 announced a record cash dividend of 1,500 VND per share (15% yield) for the fiscal year 2025, according to a filing with the Ho Chi Minh City Stock Exchange (HOSE). The company plans to disburse approximately 14.7 billion VND to shareholders on June 12, 2026. This marks a significant increase from the stable 10% dividend maintained from 2017 to 2023.

The dividend boost is underpinned by strong 2024 financial performance. Revenue grew 34% to 1,438 billion VND, while net profit rose 36.7% to 37.67 billion VND. Gross profit surged 73.6% to 89 billion VND, attributed to timely completion and acceptance of key industrial and mechanical projects. The positive momentum continued into Q1 2025, with revenue up 83% and net profit up 54% year-on-year.

Market Context

Despite the strong earnings and attractive dividend yield, L10 shares remain highly illiquid. The stock has not recorded any matched trades at the reference price of 26,850 VND for many consecutive sessions. This is due to a concentrated ownership structure: 87.14% of the charter capital is held by three major shareholders, including Chairman Dang Van Long (40.44%), Lilama Corporation (36%), and Trinh Ngoc Tuan Hung (10.7%). Even after the dividend announcement, no sell orders have appeared, reflecting tight holding by existing shareholders. L10 is listed on HOSE.

Strategic Significance

L10’s ability to raise its dividend to a record level signals strong operational performance and cash flow generation from its core construction and industrial machinery business. The company’s focus on key industrial projects has driven revenue and profit growth, suggesting a solid order book and execution capability. However, the extreme illiquidity means that minority investors cannot easily buy or sell shares, limiting the practical benefit of the high dividend yield. The concentrated ownership structure is unlikely to change in the near term, making L10 a stock for long-term holders rather than active traders.

What to Watch

• Q2 2025 earnings release to confirm sustained revenue and profit growth.
• Any changes in the major shareholders’ stakes or potential block trades that could improve liquidity.
• Progress on new industrial project contracts that could drive future earnings.
• Dividend payment date on June 12, 2026, and any subsequent trading activity.
• Possible corporate actions such as stock splits or bonus shares to enhance liquidity.